Page 16 - Regional Employment & Skills Plan

16
Addressing this issue requires a fundamental shift in the way resources are targeted as well as the general attitude towards economic growth and sustainability. There is a need to focus on investing in infrastructure, skills and improving the conditions within which businesses in Wales operate.
At a regional level, 84.4% of operating business are deemed micro-sized enterprises, indicating that they employ less than 10 individuals.21 This highlights the need for continued support for businesses of this size in particular to support growth and expansion.
2.7 Climate Change and Sustainability
Climate change and sustainability will present a number of opportunities and challenges for the region. The effects of climate change on a global scale may increase the demands on food supplies.
A demand for low carbon energy sources for the region will provide a number of opportunities as the region is well suited geographically, particularly with respect to the location of renewable energy technologies.22 As these technologies develop there will likely be a downscaling of cost which in turn could provide further opportunities for the utilisation of technologies. Further developments in Smart materials and battery storage have the potential to significantly improve the effectiveness of renewable energy sources.
2.8 Global Urbanisation
Globally the world’s large and mega cities are the primary drivers of economic growth and the majority of future growth is forecast to occur in the city region areas. ‘20 of the world’s largest 50 cities will be in Asia by 2025, up from only 8 in 2007. In 2010 the urbanisation of the world reached 50 percent and it is expected that by 2030, 6 out of 10 will be city dwellers. By 2050 it is forecast that 70 percent, of the then nine billion people, will live in cities.’23
Evidence of a trend towards urbanisation, particularly amongst the younger population is visible in the projections. This urbanisation has the potential to create a two tier economy between rural and urban areas within the region.
Economic migration of skilled labour is not an isolated issue for the region; it is reflected in the wider EU which ‘suffers a net loss of graduates to the rest of the world. It loses some of its brightest to the US and the return rates are actually falling.’
2.9 Innovation and Research & Development
To create the much needed step-change in Wales’ level of wealth generation, innovation and research and development are key. Innovation ‘contributes directly to productivity growth and creates sustainable, high-value jobs and we can choose to take steps to help us become a more innovative region.’24
21 http://rlp.infobasecymru.net/IAS/themes/economy/businesses/tabular?viewId=595&geoId=1&subsetId=42 22 Energy and Environment – A Detailed Analysis for South West and Central Wales, 2015
23 The Future’ – Steria
24 http://gov.wales/docs/det/publications/140313innovationstrategyen.pdf
Regional Employment & Skills Plan South West & Mid Wales Policy Context